The Hardest Market · Canada

Canada's HR data

The rules and costs of employing people in Canada (Toronto), from official sources, in English and Japanese.

1.08×employer's total cost on C$100,000 a year, as a multiple of salary

9public holidays (2026)

Take-home pay calculator Japan take-home pay

Federally regulated employers with 100 or more staff (banks, telecoms, transport) report their gender pay gaps, which the government publishes employer by employer in its Equi'Vision tool. It offers no download, so the figures are not repeated here. Equi'Vision

Employment rules

Statutory annual leave	2 weeks (3 weeks from 5 years); vacation pay 4%/6%
Public holidays (2026)	9 days
Notice of dismissal	ESA 1-8 weeks by service; common-law notice usually longer
Severance required by law	1 week per year, max 26 weeks (5+ years, payroll $2.5M+)
Typical negotiated exit	No official benchmark; common-law reasonable notice set by courts
Probation	None statutory; no ESA notice in first 3 months
Working hours	8h/day, 48h/week; overtime after 44h at 1.5x
How hard is dismissal?	Moderate: no cause needed with notice, but common-law notice is costly

Employer contributions

Canada Pension Plan (employer)	5.95%	on pay above C$3,500 a year, up to C$74,600 a year
Second additional CPP (employer)	4%	on pay above C$74,600 a year, up to C$85,000 a year
Employment Insurance (employer, 1.4x)	2.28%	up to C$68,900 a year
Ontario Employer Health Tax	1.95%

Employee contributions

Canada Pension Plan (base, 4.95%)	4.95%	on pay above C$3,500 a year, up to C$74,600 a year
Canada Pension Plan (first additional, 1%)	1%	on pay above C$3,500 a year, up to C$74,600 a year
Second additional CPP (CPP2)	4%	on pay above C$74,600 a year, up to C$85,000 a year
Employment Insurance	1.63%	up to C$68,900 a year

Take-home pay and employer cost by annual salary

Annual salary	Employee contributions	Income tax	Take-home	Employer cost	Cost ÷ salary
C$70,000	C$5,080	C$11,134	C$53,786	C$76,894	1.10×
C$100,000	C$5,769	C$20,025	C$74,206	C$108,168	1.08×
C$150,000	C$5,769	C$39,910	C$104,321	C$159,143	1.06×
C$220,000	C$5,769	C$72,756	C$141,475	C$230,508	1.05×

Single employee in Toronto, Ontario, Canadian tax resident for the full 2026 calendar year (the Canadian tax year), no dependants, salary only paid evenly as monthly pay (no bonus, no RRSP or other deductions), claiming only the basic personal amounts and the Canada employment amount. CPP and EI at the 2026 rates; employer is a large Ontario employer (payroll over $5 million, so no Employer Health Tax exemption). Local resident case; there is no special expatriate regime.

Sources: [1] [2] [3] [4] [5] [6] Checked 2026-11-07; 2026 rates.